Rural Communities

Debate between James Gray and Hywel Williams

Tuesday 17th April 2012 Westminster Hall

[Hywel Williams]

Briefly, there are GP surgeries in my area that dispense, and that has been a vital part of the service to the population. It does not take two or three hours to travel to a pharmacy, but it is highly inconvenient, especially when bus services are so patchy.

I want to refer to housing, and to mention that we have many unfit houses in Wales. However, the repair and renovation of housing is subject to VAT, and I think that that is wrong. VAT is charged on repair and renovation, but it is not charged in the same way on new build. Plaid Cymru has repeatedly called for a tax cut. It might surprise some hon. Members to hear that a usually left-of-centre party has called for tax cuts, but that is a particularly useful one. It is a matter of equality between people, such as a young couple renovating their first house—adding a kitchen and bathroom to the back of a pre-1919 terraced house, and being charged VAT for it—and someone retiring, say, from the City to the home counties, and building a retirement home, free of VAT.

[Mr Gray]

Does the hon. Gentleman agree that some particularly unfortunate small print in the Budget was about VAT on the restoration of historic churches and houses? Because of that, it will be necessary to do away with the restoration of the church at Castle Combe in my constituency.

[Hywel Williams]

The hon. Gentleman makes a fine point. I had a hugely confusing conversation with the Welsh Government, some time ago, about historic and listed buildings being free of VAT. The conclusion, after 20 minutes of discussion, was agreement that they were free of VAT—but only for new build. Given that we were talking about historic and listed properties, the idea of building them anew seemed somewhat peculiar to me, to say the least.

I will conclude by saying that we have social housing in Wales, as elsewhere. Social housing is extremely valuable, but often it is of the wrong type, and in the wrong place. The ability of social landlords and local authorities to let houses in rural areas has been severely curtailed. In many villages in my area, social housing has been sold. It is not available. The proposed changes in housing benefit are unlikely to help. More people under 35 will be looking for houses in multiple occupation, of which we have few in rural Wales.